Details

Who's attending

Description

China's economy worsens in July, industrial growth at 17-year low as
trade war escalates
China’s economy stumbled more sharply than expected in July, with
industrial output growth cooling to a more than 17-year low, as the
intensifying U.S. trade war took a heavier toll on businesses and
consumers.To get more china economy news,
you can visit shine news official website.
Activity in China has continued to cool despite a flurry of growth steps
over the past year, raising questions over whether more rapid and
forceful stimulus may be needed, even if it risks racking up more debt.
After a flicker of improvement in June, analysts said the latest data
was evidence that demand faltered across the board last month, from
industrial output and investment to retail sales.
That followed weaker-than-expected bank lending and gloomy factory
surveys in recent days, along with the return of producer price
deflation, reinforcing expectations more policy support is needed soon.
“China’s economy needs more stimulus because the headwinds are pretty
strong and today’s data is much weaker than consensus,” said Larry Hu,
head of Greater China economics at Macquarie Group in Hong Kong.
“The economy is going to continue to slow down. At a certain point,
policymakers will have to step up stimulus to support infrastructure and
property. I think it could happen by the end of this year.”
Industrial output growth slowed markedly to 4.8% in July from a year
earlier, data from the National Bureau of Statistics showed, lower than
the most bearish forecast in a Reuters poll and the weakest pace since
February 2002.
Analysts had forecast it would slow to 5.8%, from June’s 6.3%.
Washington had sharply raised some tariffs in May.
Infrastructure investment, which Beijing has been counting on to
stabilize the economy, also dropped back, as did property investment,
which has been a rare bright spot despite worries of potential housing
bubbles.
Crude steel output fell for a second straight month, while production of
motor vehicles continued to fall by double digits. Hi-tech
manufacturing output rose by a slower 6.6%, and the country’s power
output edged up just 0.6%.
The industry ministry said last month that China would need “arduous
efforts” to achieve its 2019 industrial growth target of 5.5% to 6.0%.